HTML5 (H5) games, which were previously offered as simple services on messaging and financial apps, are now expanding into game distribution platforms. According to Kakao, the number of H5 games available on KakaoTalk has tripled in just over two months, and One Store has entered the market in collaboration with Tencent. Game companies are also responding to market expansion by converting existing mobile games to H5 format to broaden their distribution channels.
As of September 22, Kakao reported that the number of H5 games on KakaoTalk has increased from 25 in July to 78 recently. This surpasses the initial goal of reaching 50 games by the end of the year within just two months. Kakao introduced H5 games in June by adding a gaming service to the 'More' tab on KakaoTalk.
H5 games are built on HTML5 technology, allowing users to play them directly in web browsers or existing apps without needing to download separate applications. These games primarily focus on casual genres like puzzles and arcade games, making them easy to enjoy without installation or registration burdens.
Recently, H5 games have been experiencing a resurgence, particularly on financial and messaging platforms. Following Toss's expansion of its mini-game service in October of last year, KakaoTalk and KakaoPay have also strengthened their related offerings, broadening the H5 game market.
Industry experts believe that the ability to launch games without separate installations is driving the expansion of the H5 game market. Platforms can increase user engagement and revisit rates, linking these to advertising and commerce services.
Kakao highlights the advantage of H5 games being playable directly within KakaoTalk without installation. This allows users to enjoy games casually while using existing services like messaging or shopping. Kakao operates H5-based mini-game services on both KakaoTalk and KakaoPay.
Kakao continues its strategy of consolidating various services, such as messaging, shopping, and payments, into a single platform. H5 games are part of this strategy. Instead of charging game companies a separate entry fee, Kakao shares revenue generated from in-game advertisements with them.
Kakao has observed increased user engagement as the lineup of H5 games within KakaoTalk has expanded since its initial launch. A Kakao representative stated, "We introduced H5 games to provide an additional entertainment element, similar to how users engage with messaging or shopping on KakaoTalk. The number of games has significantly increased since the launch, and user feedback has been positive."
As the H5 game market grows, more platforms are adopting this model. One Store entered the H5 market in May through a partnership with Tencent to supply mini-game content. Its revenue model leverages advertising and in-app purchases.
One Store's entry into the H5 game market is based on the rapid growth of the mini-game market in China, which is valued at approximately 11.5 trillion won, accounting for 15.3% of the overall Chinese gaming market. Tencent distributes around 20,000 mini-games through WeChat, and the developer ecosystem related to this market has reached about 400,000, demonstrating its potential and impact.
A One Store representative explained, "H5 games are a way to increase service content while securing new revenue streams."
Game companies are also actively utilizing H5 games as a new distribution channel. Neptune entered the H5 market last year by supplying its flagship game, 'Infinite Stairs,' at the suggestion of Toss, and has since expanded its lineup to nearly 60 titles. The company has broadened its distribution channels to include KakaoTalk, KakaoPay, and overseas H5 platforms. Recently, it signed a supply contract with Line, viewing the H5 business as a potential new growth area.
However, industry analysts believe that H5 games still have a long way to go before they can establish themselves as a core revenue source, rather than merely serving as a supplementary means of generating additional income through expanded distribution networks.
An industry insider noted, "As the lineup of H5 games rapidly increases, competition for securing a foothold on platforms is intensifying. While platforms focus on increasing user engagement, game companies are also looking to diversify their intellectual property distribution channels, suggesting that overall growth is likely to continue. However, proving meaningful profitability in the long term remains a challenge."
* This article has been translated by AI.
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